Senator Mackay asked the Minister representing the Minister for Communications, Information Technology and the Arts, upon notice, on 23 February 2004:

(1) Any dividends paid by Telstra to the Government.

(2) For any special dividends paid to the Government, an explanation of the basis for those special dividends, that is, on whose request and/or recommendation these dividends were paid.

(3) For any other capital payments to the Government, an explanation of the basis for those payments, that is, on whose request and/or recommendation these payments were paid.

(4) (a) All remaining balance sheet obligations to the Government, including equity and debt if applicable; and (b) can details be provided of how it is expected that these obligations will be met, for example, through future loan repayments.

Senator Kemp (Minister for the Arts and Sport) —The Minister for Communications, Information Technology and the Arts has provided the following answer to the honourable senator's question, based on advice provided by Telstra:

(1) Dividends paid. (see table below)

Telstra's Directors are responsible for declaring and paying dividends.

The issue of dividends in relation to forward estimates is a matter for the Department of Finance.

(2) When announcing the special dividend, Telstra stated that:

“The higher dividend and share buyback follow the Company's reported total free cash flow growth of 18.9 percent to $4.6 billion in the 12 months to June 30 2003, as a result of reduced capital expenditure, proceeds from asset sales and improved underlying EBIT.”

(3) Telstra has advised that the only payments since 1999-2000 that have been made to the Australian Government, in its shareholder capacity, are dividends and special dividends.

(4) (a) & (b) Telstra has advised that there are no special remaining balance sheet obligations to the Government, other than those that arise from its shareholding. Also, there is no Government support of Telstra borrowings (eg. government guarantees) - they are all “company unsecured”.